Drop shipping is when a company purchases products directly from a shipper and then sells the products to a customer without the customer knowing where the product originated from. Basically the customer never knows that they were dealing with a middleman. In the age of the internet, businesses built around drop shipments have become wildly popular.

Long a popular business model with flower sales – FTD and 1-800-FLOWERS make use of local companies to make some of their deliveries, the ability to start a business where you don’t have to invest in a store front or in the up-front costs of inventory is appealing to those looking to get away form working for others or to just supplement their income. The first step in starting a business built around drop shipments is picking your niche. When choosing your niche it’s smart to actually think small, not in your final ambition, bu in how you start out.

Say you’re passionate about shoes and want to sell those online. Instead of trying to sell every type, start off with a single type – men’s boots or ladies sandles for example. As the business grows you can add more and more product to your store, but this allows you to grow with your customers instead of trying to appeal to every customer at once. It also means that you’ll avoid competing against the bigger stores selling your products until much later after you’ve established a loyal customer base.

After you’ve decided on your niche, make sure to secure a website with an easy to use shopping cart and decide where you’ll get your products from. Sites like Google and eBay are both good places to research potential products. Also, don’t forget to decide on a shipping method. The products that you sell will influence this as shoes, jewelry, and other small products can make use of shipping options like FedEx and UPS while larger products like exercise equipment will require a more commercial shipping option for your drop shipments to customers.

No matter what product and shipping methods you choose, the important part is to make sure it’s something that you care about as that will help in the beginning when the going is slow. Grow your business slowly and know what your goal is – income supplement or new career path. Either way, do your best to enjoy it and good luck as you set out on a new path.